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Opec points to larger oil surplus in 2016 as it pumps more

Wed, Feb 10, 2016 - 7:49 PM

[LONDON] Opec pointed to a larger oil supply surplus on the world market this year than previously thought as Saudi Arabia and other members pump more oil, making up for losses in non-member producers hurt by the collapse in prices.

The Organization of the Petroleum Exporting Countries pumped 32.33 million barrels per day (bpd) in January, the group said in a monthly report on Wednesday citing secondary sources, up 130,000 bpd from December.

Opec's extra barrels come as the group expects the pace of oil demand growth to slow down in 2016, and more than offset a forecast of a slightly larger than expected supply contraction from non-Opec producers.

The report points to a 720,000-bpd excess supply in 2016 if the group keeps pumping at January's rate, up from 530,000 bpd implied in last month's report.